South Korean prosecutors are preparing to officially establish a dedicated unit to combat cryptocurrency-related crimes. Initially set up as a task force in mid-2023, the role of the unit has become more crucial due to the rise in crypto-related criminal activity. The government plans to elevate the task force into a full department within the prosecution service by February or March 2025. A Coordinated Approach The unit, previously called the Joint Investigation Unit (JIU) for virtual asset crimes, has made significant progress over the past year. It has indicted 41 individuals, arrested 18, and seized various assets, including Bitcoin (BTC), altcoins, and luxury goods, totaling around $97.5 million. With the increasing number of crypto-related crimes, the South Korean government recognizes the need for a more structured and coordinated approach. The new department will therefore not only include prosecutors but also key regulatory bodies like the Financial Supervisory Service, the Financial Intelligence Unit, and other important government agencies. Efficiency Is Key The JIU has already confiscated valuable assets, such as luxury properties and sports cars, in its ongoing battle against crypto fraud. With its workload increasing, the government believes that formalizing the unit will enable a more efficient response to the rising challenges in the local crypto sector. The Ministry of Justice is also currently gathering public feedback on the revised proposal, with plans to finalize the official launch of the unit by early March 2025. This step is part of a broader strategy to regulate and manage the volatile and often unpredictable cryptocurrency market.
